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Ernest Lake, Jr. v. State Farm Fire & Casualty Company

Held November 29, 2012 – Docket No. INS-12-2120
Decision Issued:  December 21, 2012

The named insured requested a hearing to contest the cancellation of his homeowners policy for failure to comply with loss control recommendations.  The company failed to establish that the insured’s actions on one or more of the recommendations did not adequately mitigate the exposure.

Held: For the insured. 24-A M.R.S. § 3049 permits cancellation for the insured’s failure to comply with reasonable loss control recommendations within 90 days. The company argued that three recommendations were not addressed, but did not explain how the insured’s method of repair for two of the recommendations was insufficient to prevent the cited exposure. The company also failed to support the need for the third recommendation. Accordingly, the company did not meet its burden of proof to uphold the cancellation action.

Last Updated: April 15, 2014